Daily Archives: May 9, 2021

New York firm wins auction to buy Henry Ford Village out of bankruptcy – Detroit Free Press

Posted: May 9, 2021 at 11:08 am

The Henry Ford Village: Senior Living Community on Thursday, Jan. 14, 2021, in Dearborn. (Photo: Antranik Tavitian, Detroit Free Press)

A New York firm has won an auction to buy the1,038-unitHenry Ford Village retirement community in Dearborn out of bankruptcy and intends to paya portion of current residents' refundable entrance fee deposits that bankruptcy had put at risk.

The village announced Thursday thatSage Healthcare Partners won the auction with a$76.3 million bid, beating a $69 million offer fromMED Healthcare Partners, the only other bidder.

The deal is still subject to U.S. Bankruptcy Court approvaland is scheduled for a May 24 hearing. Sage plans to continue operating the village, but will convert it to a "rental only" residential model and stop theentrance fee deposits.

Henry Ford Village,15101 Ford Road nearthe birthplace of Henry Ford,declared Chapter 11 bankruptcy Oct. 28, citing asits biggest financial challenge the liability associated with the entrance fee deposits, which range from $27,500 to $356,000andcan be refundable when a residentmoves out or dies.

The deposits were supposed to be 100% refundable and totaled more than $112 million for current residents, as well as some former residents and their heirs who are still waiting to get deposits back.

But the village struggled inrecent years to make good onthe refunds because its occupancy ratehasslumped especially during the COVID-19 pandemic and it dependedonnew deposits from incoming residents to pay out those of former residents.

More: Henry Ford Village bankruptcy puts seniors' deposits at risk. Here's why they are worried

The proposedSage deal doesnot give formerresidents or former residents' heirsany deposit refunds.

Instead, theywould betreated as unsecured creditors in the village's ongoing bankruptcy case, and may eventuallyreceive some compensation for their unrefundeddeposits.

The Henry Ford Village: Senior Living Community on Thursday, Jan. 14, 2021, in Dearborn. (Photo: Antranik Tavitian, Detroit Free Press)

The deal would allow current residents to become eligible to get a percentage of their entrance feedeposits back after specific anniversariesof the Sage sale's future closing date. These refunds would be triggered oncethey exit the village:

Sage Healthcare Partners was started in 2014 and says it owns 13 properties such as Henry Ford Villagethat are known as continuing care retirement communities. Henry Ford Village isthe largest such community in the country and employed a staff of more than 500.

Chad Shandler, Henry Ford Villages chief restructuring officer, was not available for an interview Thursday, but issued a statement announcingthe auction results.

"Were confident thatSage, as the winning bidder, considers the long-term best interests of our residents, employeesand allthe wonderful people that make Henry Ford Village a true community, Shandler, also a New York-basedexecutive with FTI Consulting,said in the statement.

He continued, Throughout the sale process, our guiding focus was to identify a path forward that upheld Henry Ford Village's values and stabilized its financial position while allowing us to maintain the care and lifestyle our residents have come to know, love andrely on. Under Sages ownership, we believe HFV will achieve just that while providing a distribution to unsecured creditors.

Sage's PresidentAvi Satt said in a statement that his company looksforward to strengthening HFV

financially while enhancing the lifestyle residents have come to love."

Contact JC Reindlat 313-222-6631 or jcreindl@freepress.com. Follow him on Twitter@jcreindl. Read more on business and sign up for our business newsletter.

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New York firm wins auction to buy Henry Ford Village out of bankruptcy - Detroit Free Press

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Anticipating the Next Wave of Retail Bankruptcies WWD – WWD

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After the rush of bankruptcy filings last summer in the earlier phase of the ongoing COVID-19 pandemic, retail watchers had feared another wave in 2021.

But a combination of factors hasled to an extended lull in restructurings, as lenders nonetheless remain wary of signs of trouble. A recent report by S&P Global Market Intelligence cited Government stimulus, low interest rates and flexible lenders as some of the reasons for the relatively stagnant pace of filings about 155 companies have filed for bankruptcy in 2021, compared to 180 in the same period last year, according to an S&P Global Market Intelligence report in late April.

Just about a dozen of those have involved U.S. retail bankruptcies since the start of the year to mid-April, according to data from S&P Global Market Intelligence. But if companies hit trouble accessing financing to pay vendors or to keep their operations on pace, it could set off a cascade effect, experts said.

Borrowers are currently able to get access to financing to extend the runway, but if theres a climb in rates, or otherwise tightening on the ready access to capital, then youre going to see a relatively significant spike in defaults, said Justin Bernbrock, partner in Sheppard Mullin LLPs finance and bankruptcy practice group.

I think, particularly as it relates to the retail industry, theres now also a fair amount of pent-up consumer demand, he added. I think that to some extent, theres going to be almost a bridge period, where some retailers are going to be propped up by this outpouring of consumer desire to go to a store and try on a pair of jeans.

Lenders are also continuing to monitor covenants to ensure that the businesses are complying with their terms, bankruptcy watchers said. Lines of credit, for instance, are gauged based on accounts receivable, which if they decline, can jeopardize the line of credit and affect a companys ability to borrow.

As that line of credit availability decreases, your ability to use that line of credit to pay for supplies, etc. will also be an issue, said Nanette Heide, a partner in Duane Morris LLPs corporate practice group.

Ongoing stimulus funding through landmark measures including the $1.9 trillion American Rescue Plan, which also boosted the Paycheck Protection Program meant to provide forgivable loans to companies, have helped keep some retailers afloat.

In addition, tweaks to aspects of the bankruptcy code, made in part through COVID-19 stimulus measures, have helped smaller retailers by making the process more accessible and affordable for companies with lower amounts of debt, and making the Chapter 11 process a relatively painless vehicle for recovery. Furla USA, for instance, had used the fairly new subchapter 5 provision of the bankruptcy code to execute a relatively quick restructuring within three months.

When that faucet is turned off, youll see more significant impact on businesses that were relying on that money, that arent recovering as quickly as they would like to, said Heide, referring to life for companies after stimulus funds dry up.

If theyre brick-and-mortar, and they havent transitioned to more of an online presence to give them additional sales, especially if theyre in large locations, like a mall or something like that, because were still experiencing the pandemic, people are reticent to go out into a large crowd atmosphere, Heide said.

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Anticipating the Next Wave of Retail Bankruptcies WWD - WWD

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Life is Good almost filed for bankruptcy last year. Here’s what CEO says saved the retailer – CNBC

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Life is Good was on the verge of filing for bankruptcy protection last year, according to its CEO, but the retailer managed to overhaul its business strategy in a matter of weeks to have its best year ever during the Covid pandemic.

"When [Covid] hit, 50% of our business was wholesale ... and that business died in a hurry," Life is Good co-founder and CEO Bert Jacobs said Tuesday during CNBC's Small Business Playbook event.

"We were in a situation where we were facing bankruptcy, and we were facing having to cut at least half of our staff. That's when we said ... let's play offense really hard. Let's produce this stuff to order, and let's see what happens."

Instead of ordering in bulk shirts, pullovers, hats and other accessories that are already printed with logos, slogans and other designs, Life is Good started ordering batches of blank items last year, the CEO explained. Then, monitoring consumer sentiment, it began printing inventory on-demand that had phrases about staying home and quarantining, wearing masks, and other pandemic-related trends.

"We started speaking to whatever was culturally relevant, which at the time was a lot of difficult things, but we tried to keep it light," Jacobs said.

Bert Jacobs, Co-Founder and Chief Executive Optimist of Life is good

Paul Morigi | CNBC

The strategy clearly helped. Not only did it aid in boosting customers' morale, but it was a financial success story.

"2020 ended up being the best top line we've ever had in 27 years, and the strongest bottom line," Jacobs said. (The privately held company didn't break out exact sales figures.)

"2020 showed us how we should be running our business," he said, adding that sales in 2021 are still "growing like mad" because Life is Good is sticking to the business principles that it picked up on during the past few months.

"We are working for the consumer, and everybody's got to do that," Jacobs explained. "The [retailers] that survive are going to be the ones that listen closely and capture the data. ... The consumer gives you the answers."

A number of retailers were not as lucky as Life is Good last year, as they buckled under the pressures brought on from the health crisis. Dozens filed for bankruptcy, and thousands of store closures were announced by retail businesses, many in the apparel category.

There is a renewed sense of optimism, however, that demand is beginning to rebound as consumers leave their homes and prepare to socialize again. Americans will be returning to work, in droves, in the months ahead, and families are looking to book long-awaited summer vacations.

"This is really a community of rational optimists," Jacobs said. "I say rational optimists because we recognize that there are challenges in the world ... that it's difficult ... but we decide when we wake up in the morning to focus on what's right with our lives, what's right with the world, more than what's wrong with the world."

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Hertz confirms new offer from Knighthead, Certares for bankruptcy exit – Reuters

Posted: at 11:08 am

A logo of car rental company Hertz is seen on a building during the coronavirus disease (COVID-19) outbreak in Nice, France, May 27, 2020. REUTERS/Eric Gaillard

Hertz Global Holdings Inc (HTZGQ.PK) said on Tuesday it had received a revised offer from Knighthead Capital Management, Certares Management and Apollo Global Management to fund the car rental company's exit from Chapter 11 bankruptcy.

The revised offer aims to fund Hertz's bankruptcy exit through direct common stock investments of $2.9 billion, direct preferred stock investments of $1.5 billion and a rights offering to raise $1.36 billion.

A media report on Monday said Knighthead Capital Management and Certares Management's latest offer gives Hertz an enterprise value of more than $6.2 billion.

In March, Hertz said Knighthead and Certares had agreed to buy a majority stake in the company for $4.2 billion. read more

The new offer also rivals a bid backed by private investment firms Centerbridge Partners, Warburg Pincus and Dundon Capital Partners, to provide equity capital to fund for Hertz's exit from bankruptcy.

Hertz said it would evaluate the new offer and has not made a decision. The company's shares fell 7% to $2.98 in premarket trading.

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Hertz confirms new offer from Knighthead, Certares for bankruptcy exit - Reuters

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Company that owns Think Loud building in York, tied to rock band Live, files for bankruptcy – York Daily Record

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What has been the personal recording space for the band Live is now open to musicians from far and wide. York Daily Record

A limited liability company that owns a four-story building in York thats tied to members of the multi-platinum-selling rock band Live has filed for bankruptcy.

120 York LLC filed a voluntary petition for Chapter 11 bankruptcy on April 27 in U.S. Bankruptcy Court for the Middle District of Pennsylvania. The process allows businesses to reorganize and restructure their debts.

The company owns the Think Loud building, which is located on York Street near PeoplesBank Park and contains the offices of United Fiber & Data, a telecommunications startup thats built a 340-mile fiber-optic line connecting New York City to Ashburn, Virginia, in the Washington, D.C., suburbs. The firm has boasted that it would create more than 300 jobs and generate in excess of $2 billion in state tax revenue in 30 years in Pennsylvania.

RELATED: Live from 'S--- Towne': Rock stars returned to build better York, but promises unfulfilled

120 York LLC, the company that owns the Think Loud building in York that's tied to members of the multi-platinum-selling rock band Live, filed on April 27 for Chapter 11 bankruptcy in U.S. Bankruptcy Court for the Middle District of Pennsylvania. In 2020, Kinsley Construction obtained a $13.94 million judgment against the company.(Photo: Ty Lohr, York Daily Record)

In 2020, Kinsley Construction obtained a more than $13.94 million judgment against 120 York and later moved to have the building put up for sheriffs sale, which was supposed to take place on June 7. The bankruptcy case automatically puts that on hold.

The members of 120 York are Chad Taylor, Chad Gracey and Patrick Dahlheimer, the lead guitarist, drummer and bassist of Live, respectively, as well as their business partner, Bill Hynes.

Gov. Tom Corbett's administration awarded a total of $7 million to what was billedasthe 210 York St. project, which included included making renovations to the 53,000-square-foot building. The property used to house Bi-Comp, a printing company.

The state has paid out $3.38 million as reimbursement for construction costs, according to the Office of the Budget.

MORE: United Fiber & Data has 'abandoned' its offices in the Think Loud building, lawsuit claims

Court documents indicate that 120 York has at least 14 other creditors, including MetEd, Verizon and York Water Co. The business owes all of them a total of almost$30,625.

120 Yorks general counsel, Jason Confair, could not be reached.

RobertChernicoff, 120 York'sbankruptcy attorney, said the process gives clients time to try to reorganize and improve their financial situations.

CHECK OUT: Sheriff's sale of Think Loud building tied to members of rock band Live is postponed

The York County Tax Claim Bureau recently filed a tax claim against 120 York that totals approximately $95,230 for unpaid taxes on the Think Loud building, according to court records.

Contact Dylan Segelbaum at 717-771-2102.

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Sackler Family Bid For Opioid Immunity Is Fought By 24 States And DC – NPR

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David (left) and Kathe Sackler, members of the family that owns Purdue Pharma, the maker of Oxycontin, testified via video to a House Oversight Committee hearing on Dec. 17, 2020. Sackler family members have acknowledged that the drug had a role in the opioid crisis, but they have stopped short of apologizing or admitting wrongdoing. House Television via AP hide caption

David (left) and Kathe Sackler, members of the family that owns Purdue Pharma, the maker of Oxycontin, testified via video to a House Oversight Committee hearing on Dec. 17, 2020. Sackler family members have acknowledged that the drug had a role in the opioid crisis, but they have stopped short of apologizing or admitting wrongdoing.

For months, members of the Sackler family that owns Purdue Pharma, the maker of Oxycontin, have portrayed their bid for immunity from future opioid lawsuits as a kind of fait accompli, a take-it-or-leave-it fix to a legal morass.

In exchange for what amounts to a legal firewall for the Sacklers and their remaining empire, members of the family have offered to forfeit control of their bankrupt drug company and pay $4.2 billion from their private fortunes.

Judge Robert Drain, who is presiding over the case in White Plains, N.Y., has suggested that such a deal may be desirable and achievable along these broad lines.

A negotiated settlement could preempt years of costly litigation the Sacklers deny any wrongdoing and might accelerate financial aid to communities struggling to recover from an opioid epidemic that has already cost more than 450,000 lives.

But a growing group of public officials and activists is mounting a last-ditch effort to derail the plan, describing it in legal briefs as an unethical, and possibly unlawful, use of the bankruptcy court's power.

Late last week, 24 state attorneys general as well as the attorney general for Washington, D.C., filed a new brief describing the proposed settlement as "unprecedented," "unjust" and "unconfirmable as a matter of law."

"The bankruptcy system should not be allowed to shield non-bankrupt billionaires," said Massachusetts Attorney General Maura Healey in an interview with NPR.

"It would set a terrible precedent. If the Sacklers are allowed to use bankruptcy to escape the consequences of their actions, it would be a roadmap for other powerful bad actors."

State AGs aren't alone in objecting to the deal. In recent weeks, attorneys representing local and state governments, native tribes and opioid activists filed briefs raising legal and ethical concerns about the plan.

A division of the Justice Department that oversees bankruptcy cases also filed a brief questioning whether the bankruptcy court has the "authority and jurisdiction" to approve such a plan.

Seeking bankruptcy-like protection without filing for bankruptcy

The Purdue Pharma case is dauntingly complex, involving what may be the nation's worst man-made public health crisis, but the central legal dispute now hinges on a simple fact: The Sacklers are seeking bankruptcy-like protections from the court without actually filing for bankruptcy.

Here's how this would work.

One piece of the family's private empire, Purdue Pharma, sought Chapter 11 protection in 2019, exposing the firm to a rigorous accounting by creditors.

But the rest of the Sacklers' vast holdings cash, art, real estate, companies and trusts valued at roughly $11 billion aren't part of that process.

Yet the Sacklers are negotiating to use a rare and controversial bankruptcy procedure known as "non-consensual third-party releases" that would protect them and their assets from lawsuits linked to the opioid crisis.

"They will be shielded from any further scrutiny because the release and injunction that's being contemplated means they can never be sued," said Jonathan Lipson, a bankruptcy expert at Temple University.

In recent weeks, a growing number of local, state and federal governments have filed briefs raising alarm about this provision of the deal.

"The current plan impermissibly allows the Sacklers to escape scrutiny while availing themselves of the 'fresh start' benefits of bankruptcy by free-riding on the Purdue Pharma bankruptcy," attorneys representing a coalition of school districts suing Purdue Pharma wrote in an April 23 legal filing.

"If the Sacklers wish to obtain the benefits of bankruptcy-like insulation from the consequences of their conduct, then Sackler family members and related entities should be required to file their own individual bankruptcy proceedings," the school districts argued.

Experts say some federal appellate courts have agreed, prohibiting outright the kind of third-party releases the Sacklers are seeking. In other parts of the country such deals have been approved but only with strict limitations.

"There's a split among the U.S. courts of appeal on both whether they're permissible at all and ... how do we decide when it's OK and when it's not?" Lipson said.

Can a federal bankruptcy court halt a state investigation?

In their brief filed Thursday, state attorneys general and the attorney general for the District of Columbia argued that this case doesn't involve the "specific" and "exceptional" circumstances that would allow the Sacklers to benefit from such releases.

They note that the bankruptcy court would not only be halting private lawsuits against the Sacklers, but the deal would also force states to suspend efforts to investigate members of the family and hold them accountable.

"The court should not, through third-party non-consensual releases of non-debtors, strip the public of the protections of state-by-state police and regulatory powers," the AG brief argued.

In an earlier brief, the states noted that the Justice Department has taken a position that "the non-consensual release of government claims against non-debtors such as the Sacklers is never lawful."

Purdue Pharma, which has pleaded guilty twice to criminal conduct for its opioid practices, most recently last year, hasn't responded to these objections and a company spokesman declined comment.

The Sacklers who served on the company's board of directors have denied any wrongdoing and have never faced criminal charges. Spokespeople for branches of the Sackler family didn't respond to a request for interviews or comment.

If the deal proposed by the Sacklers is finalized the next court hearing was planned for Monday but has been delayed until May 12 critics say it could set a dangerous new precedent that extends beyond the opioid crisis.

A legal brief filed in April by a group of opioid activists argued that such a settlement would open the floodgates to other wealthy people accused of serious wrongdoing who might use bankruptcy courts to limit their exposure to lawsuits without being required to file for bankruptcy.

"If the American judiciary is available to compel settlements to give billionaires peace because they want it, then billionaires will of course demand it," the brief said.

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Post-Bankruptcy, Debenhams Is Permanently Closing the Last of All of Its Stores by Next Weekend – Yahoo Lifestyle

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By next weekend, Debenhams will no longer have any brick-and-mortar stores.

The British department store chain, which fell into administration last year for the second time, has confirmed the permanent closures of its remaining 49 outposts on May 12 and May 15. It had previously announced that another 52 of its locations will shutter for good this Saturday.

More from Footwear News

Over the next 10 days, Debenhams will close its doors on the high street for the final time in its 242-year history, the company wrote in a statement. We hope to see you all one last time in stores before we say a final goodbye to the U.K. high street.

As part of the liquidation process, the retailer whose entire store portfolio is located in the United Kingdom is offering up to 80% off all fashion and home merchandise, as well as up to 70% off beauty and fragrance items.

This the very last chance for our customers to take advantage of some incredible deals, it added. Our sincere thanks go out to all of our colleagues and customers who have joined us on this journey.

Like many retailers, Debenhams struggles were compounded by the COVID-19 health crisis, which led it to temporarily close its units and place workers on furlough. In April, it appointed administrators but was ultimately unable to find a buyer or restructure its business, and in December, the chain moved forward with a wind-down of its operations.

At the start of the calendar year, online fashion retailer Boohoo announced that it acquired all of the intellectual property assets of Debenhams, including customer data and selected contracts, for 55 million pounds (or $75.4 million at the time). However, the deal did not include the department stores outposts or its staff members meaning more than 12,000 people will lose their jobs upon the shutdowns.

Debenhams goodbye marks the latest development in the blow to Britains retail sector. Just yesterday, Topshop whose parent Arcadia Group collapsed into administration in late November launched a sale process for its iconic flagship store on Oxford Street. The building, which was valued at about 500 million pounds as recently as two years ago, now carries a price tag of 420 million pounds (or $582.1 million).

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Post-Bankruptcy, Debenhams Is Permanently Closing the Last of All of Its Stores by Next Weekend - Yahoo Lifestyle

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Psychedelics as therapy? West Michigan author advocates for further research and acceptance – Michigan Radio

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Stateside's conversation with Paul Austin

Humans have used psychedelics like magic mushrooms, acid, or ecstasy in a variety of ways for a long time. Though the drugs remain illegal on the federal level in the U.S., interest in psychedelics is continuing to grow, as is the movement to normalize their use particularly for therapeutic purposes.

Last September, the city of Ann Arbor decriminalized psychedelic plants and fungi, and one of the organizations behind the effort is now aiming to decriminalize them statewide. And, as psychedelic use becomes a little more commonplace, some entrepreneurs are building careers out of educating and coaching people on the practice of microdosing.

West Michigander Paul Austin, the author of Microdosing Psychedelics: A Practical Guide to Upgrade Your Life, says he thinks psychedelics are becoming more widely accepted as a therapeutic tool for mental health conditions. Hes also an advocate for using them in small doses to achieve what he calls an optimal outcome in your work or life.

It's really looking at: how can microdosing help with leadership development? How can it help with optimal wellbeing, with things like flow and creativity? Austin said. And what does it say about people, as they're starting to work with psychedelics in terms of both microdoses and also higher doses, how does that change the work that they choose to pursue, even?

Clinical trials studying the effects of taking psychedelics to treat conditions like depression, anxiety, or addiction have increased in the past decade. For example, in one Johns Hopkins University Center for Psychedelic and Consciousness Research study last year, scientists found that adults with major depression experienced improvement in their symptoms after receiving doses of psilocybin, a hallucinogenic compound found in some kinds of fungus.

But despite growing research and interest in psychedelics, theres still a lot we dont know about them and how they can uniquely affect people. Scientists and medical practitioners point out that while clinical trials might show benefits, participants in those studies are taking psychedelics in carefully controlled environments not without supervision. And in certain cases, particularly for people with heart conditions or with family histories of psychosis, psychedelics might be a risk to physical or mental health.

Austin emphasizes the importance of working with a guide when using psychedelics for therapeutic or recreational purposes. He offers a coaching package for people interested in microdosing through The Third Wave, an online resource he founded for people hoping to learn more about psychedelic use. Austin says a coach can help people navigate a microdosing or higher-dosage experience.

Their goal is to provide a mirror, to help guide someone into a deeper knowing in themselves, to become more coherent, to heal certain trauma that might be stored in the unconscious and the subconscious, and to do it in a way that guides someone to better outcomes, he said.

Austin says clinically trained professionals are the best guides for patients seeking to use psychedelics to help with a mental health condition. For individuals interested in nonclinical outcomes like expanding creativity, Austin says a therapist or psychiatrist may not be necessary, but he recommends a guide with strong listening skills and knowledge of integrative wellness.

Oftentimes the initial process of psychedelics is healing. There's often, for many, if not all of us, elements to explore, shadow elements to explore what needs to be healed, what needs to come up from the subconscious and the unconscious, he said. But for those of us who have either done this or had other practices, these are phenomenal tools for these expanded states of being, which are just so connected, so beautiful.

For more, listen to the full conversation above.

This post was written by Stateside production assistant Nell Ovitt.

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MindMed Announces Project Angie, Targeting the Treatment of Pain with Psychedelics – PRNewswire

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NEW YORK, May 5, 2021 /PRNewswire/ -- Mind Medicine (MindMed) Inc. ("MindMed" or the "Company") (NASDAQ: MNMD) (NEO: MMED), (DE: MMQ), a leading psychedelic-inspired medicine company announces the launch of its Project Angie to advance the development of psychedelics, including LSD, to treat pain conditions. MindMed is currently exploring two primary clinical indications for the treatment of pain.

For the commencement of Project Angie, MindMed will initiate a study of LSD in a severe pain indication. MindMed is currently preparing a pre-IND briefing package for this Phase 2a Proof of Concept study which it plans to submit to the FDA in the second half of 2021. In addition, the Company is also evaluating a second indication in a common, often debilitating, chronic pain syndrome.

Patients experiencing chronic pain represent a large and growing segment of the population and, according to IQVIA, the global market for analgesics is expected to grow to over $31 billion by 2030. At the same time, overuse of opioids in the treatment of pain has contributed to the opioid epidemic in the United States and around the world.There has been little innovation in the pain market in decades and the treatment paradigm is still dominated by opioids and nonsteroidal anti-inflammatory drugs (NSAIDs).

Preliminary evidence, including a clinical study co-authored by MindMed collaborating researchers Prof. Dr. Matthias Liechti and Dr. Kim Kuypers, suggests that psychedelics may offer an entirely novel mechanism of action for treating pain, which could ultimately offer patients a new treatment option. The exact mechanisms by which psychedelics may carry out their analgesic effect have not been fully characterized but may involve direct effects on endogenous pain modulation pathways. This mechanism is particularly relevant as altered function, or dysfunction, of these pain modulation pathways has been implicated in a range of pain syndromes.

"Evidence dating back to the 1950s suggests that LSD and other psychedelics may have analgesic effects, but this treatment area remains largely untapped by companies studying psychedelics, with the majority of research focusing solely on psychiatric indications" said MindMed Chief Development Officer, Rob Barrow.

MindMed CEO & Co-Founder J.R. Rahn said "With the launch of Project Angie, we seek to align closely with MindMed's core mission to improve mental health and combat substance use for the many patients in need. If we can help to develop a new paradigm to treat pain, it may have the potential to greatly reduce the use of addictive medicines such as opioids currently ravaging society and its mental health."

Additional details about MindMed's planned clinical trials in pain will be forthcoming.

About MindMed MindMed is a clinical-stage psychedelic medicine biotech company that discovers, develops and deploys psychedelic inspired medicines and therapies to address addiction and mental illness. The company is assembling a compelling drug development pipeline of innovative treatments based on psychedelic substances including Psilocybin, LSD, MDMA, DMT and an ibogaine derivative, 18-MC. The MindMed executive team brings extensive biopharmaceutical experience to MindMed's approach to developing the next generation of psychedelic inspired medicines and therapies.

MindMed trades on the NASDAQ under the symbol MNMD and on the Canadian NEO exchange under the symbol MMED. MindMed is also traded in Germany under the symbol MMQ.

Forward-Looking Statements Certain statements in this news release related to the Company constitute "forward-looking information" within the meaning of applicable securities laws and are prospective in nature. Forward-looking information is not based on historical facts, but rather on current expectations and projections about future events and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as "will", "may", "should", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe", "potential" or "continue", or the negative thereof or similar variations. Forward-looking information in this news release include, but are not limited to, statements regarding the Company's plans and the timing of such plans related to its study of LSD in a severe pain indications, the potential benefits associated with psychedelics as a pain treatment option generally and compared to other currently available treatment options ability and the Company's other intended future business plans and operations. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. There are numerous risks and uncertainties that could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information, including history of negative cash flows; limited operating history; incurrence of future losses; availability of additional capital; lack of product revenue; compliance with laws and regulations; difficulty associated with research and development; risks associated with clinical trials or studies; heightened regulatory scrutiny; early stage product development; clinical trial risks; regulatory approval processes; novelty of the psychedelic inspired medicines industry; as well as those risk factors discussed or referred to herein and the risks described under the headings "Risk Factors" in the Company's filings with the securities regulatory authorities in all provinces and territories of Canada which are available under the Company's profile on SEDAR at http://www.sedar.com and with the U.S. Securities and Exchange Commission on EDGAR atwww.sec.gov. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results and future events could differ materially from those anticipated in such information. Although the Company has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend and does not assume any obligation to update this forward-looking information.

Media Contact: [emailprotected]

SOURCE Mind Medicine (MindMed) Inc.

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Expert Q&A: MAPS and Psychedelic-Assisted Psychotherapy – Psychiatry Advisor

Posted: at 11:07 am

After decades of limited research and legal roadblocks to medical and recreational use, psychedelic drugs are rapidly remerging as treatments of interest in psychiatry. Cannabis for medical use is widely available across the United States, and in the 2020 elections, a number of states relaxed drug laws, with Oregon allowing psychedelic treatments at medical centers.1

These legal changes, particularly regarding nonmedical or recreational use, will have many physicians worried about the development of substance use disorders in broad swathes of the population. However, relaxed regulations may offer an opportunity to learn more about how the diverse range of psychedelic drugs can be applied as treatments in psychiatric settings.2-4

The first part of this series of articles (Psychedelic Drugs: Lessons From Ketamine and Psilocybin) explored a couple of very different psychedelic treatments for psychiatric disorders, namely esketamine and psilocybin-based treatments for major depressive disorder (MDD).5 Whereas the development of esketamine has focused on a fast-acting, novel treatment mechanism, psilocybin-assisted psychotherapy has emphasized hallucinogenic properties as a means of confronting complex psychological processes. These drugs also differ in terms of their medical histories ketamine has been used for anesthesia and magic mushroom-derived psilocybin has mostly been applied recreationally in nonmedical settings.3-5

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Alongside psilocybin, 3,4-Methylenedioxymethamphetamine (MDMA) is considered to be the most studied psychedelic treatment, according to a review published in The American Journal of Psychiatry, and promising findings in terms of efficacy and safety warrant further research on MDMA-assisted treatments for posttraumatic stress disorder (PTSD).6-8 Furthermore, MDMA-assisted psychotherapy has demonstrated considerable cost-effectiveness in a recent study published in PLoS One.9

A recent New York Times16 article reported on a study about MDMA and PTSD to be published later this month in Nature Medicine. The study found that patients with severe PTSD who received MDMA during therapy had a significantly greater reduction in the severity of their symptoms compared with those who did not receive therapy and received an inactive placebo. Two months after treatment, 67 percent of participants in the MDMA group no longer qualified for a diagnosis of PTSD, compared with 32 percent in the placebo group. In addition, the study found no serious side effects, although some participants temporarily experienced mild symptoms like nausea and loss of appetite.

Much of the groundbreaking work on psychedelic-assisted psychotherapy has been funded and conducted by the Multidisciplinary Association for Psychedelic Studies (MAPS), a nonprofit research center that has been a leading advocate for psychedelic treatments in medical settings since its founding in 1986. Given the considerable restrictions on certain substances under federal drug scheduling, MAPS has advocated for improved access for researchers trying to study psychedelic drugs. In particular, MAPS has explored the emerging medical applications of MDMA and cannabis.8-11 Although both substances may fall under the label of psychedelics and share a history of medical and recreational use, their risks, mechanisms of action, and methods of treatment differ greatly.2-3

MAPS recently filed a Massachusetts lawsuit against the Drug Enforcement Administration (DEA) and the Attorney General in an attempt to force the DEA to process applications for marijuana production licenses to conduct clinical trials.12 In a press release, MAPS noted that clinical trials are limited by the current sole licensee and source of marijuana for studies, with researchers arguing that its poor quality and limited variability are not comparable to cannabis currently available through either state-regulated markets or informal markets.12

In this second part of the series, we spoke with Dr Michael Mithoefer, Senior Medical Director for Medical Affairs, Training, and Supervision at the Multidisciplinary Association for Psychedelic Studies (MAPS).13 Dr Mithoefer has worked on phase 2 trials of MDMA-assisted psychotherapy and trains therapists in these experimental techniques.8,13 He practices and conducts research in Asheville, North Carolina and Charleston, South Carolina and prior to specializing in psychiatry Dr Mithoefer practiced emergency medicine.

We also spoke with Sara Gael, MA, a Harm Reduction Officer with the Zendo Project and former Director of Harm Reduction at MAPS. She has served as a therapist on MAPS clinical trials for MDMA-assisted psychotherapy for PTSD and specializes in trauma.

Why do you think psychedelics have become a major area of research in psychiatry? Over the course of your career, what have been the main challenges to making them seriously considered as treatments in the field?

Michael Mithoefer, MD: Psychiatry was once focused largely on psychotherapy, but when pharmacological agents were developed there was optimism that they would be effective treatments and there would be steady advance in this area. Unfortunately, even though they were helpful for some conditions, in many cases they suppressed symptoms rather than meeting the hopes expressed in the names given to the drugs such as antipsychotics, antidepressants and antianxiety drugs.

In fact, they fell far short of curing well-understood diseases the way antibiotics and many other drugs can, and little by little many therapists and psychiatrists became increasingly disappointed in the available treatments for many psychiatric disorders and frustrated that they didnt have more effective treatments for their patients.

The studies that explored psychedelics (often LSD) before they became illegal had been quite promising and there was a lot of interest in mainstream psychiatry until they were made illegal. When we and other researchers started publishing rigorous studies in respected journals our results were at first greeted with skepticism, but as the data accumulated and people became better informed about the science, there was a hunger for better treatments.

Sara Gael, MA: We are in dire need of effective treatments and solutions in the mental health field. We are experiencing an unprecedented mental health crisis on this planet, which cannot be extricated from the larger systemic issues our society is facing on social, political, and environmental levels.

We can no longer treat mental health as an isolated factor, but one that is connected to and interwoven within a complex and dynamic web. We can no longer afford, as a society, to view and treat mental and emotional health by addressing just the symptoms. We have deep collective trauma that has amassed over centuries. Psychedelic therapy and treatment have the potential to treat some of the root causes of distress and suffering, including this multi-generational trauma.

The stigma surrounding psychedelics including misinformation, fear, and the systemic issue of drug prohibition have made psychedelic research and treatment difficult to pursue. We are reaching a time where people are waking up to this misinformation and beginning to understand that the prevalent misinformation about psychedelics in our society is not grounded in fact and sound evidence but in misinformation and resulting stigma against psychedelics and psychedelic use.

How do you think psychedelics can be incorporated into existing systems of care? When and where do you see these treatments eventually being used?

MM: I think it is likely to be incorporated in a number of different ways. If MDMA is approved, some treatment will probably happen in private clinics, some at academic centers, and hopefully some in specialized centers dedicated to research and treatment.

What makes psychedelics different from more traditional psychiatric medications? How will the study, production, and implementation of psychedelic treatments differ in relation to the pharmaceutical industry and regulatory bodies?

MM: The difference is that psychedelics are used as catalysts to psychotherapy rather than just a drug treatment, and psychedelics are administered only a few times rather than daily.

The difference in the research and production of MDMA is strikingly different from most pharmaceutical drug development in that it is done through a non-profit/public benefit model without any government or industry funding. There are articles about that in the MAPS bulletin that are available without charge at the MAPS website.

SG: Psychedelic therapy has the potential to address some of the root causes of psychological distress, including trauma. Traditional psychiatric medications can be very helpful for symptom relief and work for many people. For some, traditional medications are not entirely effective or carry with them unwanted side effects.

Rather than being used in an ongoing manner, psychedelics are more likely to be used for a determined period of time or at certain intervals. They are also much more likely to be taken as an adjunct to psychotherapy and not on their own.

Medical marijuana has demonstrated promising effects for patients with PTSD, but it has also been linked to psychosis. Are there other disorders that you think medical marijuana could safely treat? Do you have any concerns about misuse?

MM: There is always concern about misuse. Wise use and setting are very important in determining the results and the safety. The MAPS study of cannabis for PTSD did not show an effect over placebo, but additional studies are planned. There is quite a bit of research about other indications.

MAPS has done pioneering work on MDMA-assisted psychotherapy for PTSD, with patients receiving a small number of doses in a targeted treatment. How does the treatment regimen work, and what are the next steps for trials?

MM: Please see some of our papers for the details of the treatment course and some hypotheses about mechanism.7 Another good source is a book that just came out that has a chapter my wife and I wrote about MDMA, the Handbook of Medical Hallucinogens, edited by Charles S Grob and Jim Grigsby and published by Guilford Press.14 Our chapter has quite a few reflections about the nature of the therapeutic process. The approach is also described in detail in our treatment manual that is also available at the MAPS website.10

You have also helped therapists complete a training program in MDMA therapy. What have you learned by training therapists, and what resources are needed to make this treatment accessible and available?

MM: Weve now trained over a thousand therapists in the method described in the manual, and were in the process of redesigning our training program and bringing on more trainers so we can scale up the training to meet anticipated demand. Weve found that watching and discussing videos from research sessions, role play and then supervision of their first treatments has led to good results. We think another important element is that therapists do enough of their own inner work to allow them to maintain empathic presence during 8 hour sessions that can be very emotionally intense.

How can physicians and researchers develop a sense of trust and security with patients who may be skeptical of psychedelics? Have you faced any challenges with patients during trials?

MM: This is why preparation sessions are so important. If therapists have a deep understanding of and trust in an individuals innate capacity for healing, along with an awareness of potential challenges and experience with supporting people in facing them, then they can help the patient develop a greater sense of trust. Part of this is exploring and addressing, in an unhurried and empathic way, any concerns or questions the patient may have.

The FDA has approved intranasal esketamine for the treatment of refractory depression. What are the implications of esketamines approval on psychedelic drugs more broadly?

MM: This is an example of the problem with for-profit drug development. Generic ketamine works as well as esketamine and costs a few dollars rather than a few thousand dollars, so the only reason for developing esketamine was that ketamine was off patent. Also, esketmine is usually used without psychotherapy. There should be studies (and there are some happening now) to see if adding psychotherapy to ketamine would lead to more durable results, instead of wearing off in a week or two.

In the past election, many states passed more lenient drug legislation. What are the implications of this shift and why do you think the general public has become more open to the use and study of previously illicit drugs?

MM: [Thats a] very complicated question I think part of it is a result of the media educating people about the scientific results. Michael Pollans book has certainly been part of it.15 A generation is coming along who doesnt carry the fears and misconceptions and misinformation from the Nixon years, and I suspect part of it is that on some level, it makes intuitive sense to people that theres potentially more richness to psychological growth and healing than simply administering a drug.

References

1. Siegel Z. 2020 election results prove Americas war on drugs is finally ending. NBC News. Published online November 9, 2020. Accessed April 5, 2021. https://www.nbcnews.com/think/opinion/2020-election-results-prove-america-s-war-drugs-finally-ending-ncna1247141

2. Nutt DJ, Erritzoe D, Carhart-Harris R. Psychedelic psychiatrys brave new world. Published online April 2, 2020. Cell. doi.org/10.1016/j.cell.2020.03.020

3. Rucker J, Iliff J, Nutt DJ. Psychiatry & the psychedelic drugs. Past, present & future. Neuropharmacol. 2018;142:200-218. doi:10.1016/j.neuropharm.2017.12.040

4. Johnson MW, Hendricks PS, Barrett FS, Griffiths RR. Classic psychedelics: an integrative review of epidemiology, therapeutics, mystical experience, and brain network function. Pharmacology & Therapeutics. 2019;197:83-102

5. Williams B. Psychedelic drugs: Lessons From ketamine and psilocybin. Psychiatry Advisor. Published online October 21 2020. Accessed April 5, 2021. https://www.psychiatryadvisor.com/home/topics/general-psychiatry/psychedelic-drugs-lessons-from-ketamine-and-psilocybin/

6. Reiff CM, Richman EE, Nemeroff CB, et al. Psychedelics and psychedelic-assisted psychotherapy. Am J Psychiatry. Published online February 26, 2021. doi.org/10.1176/appi.ajp.2019.19010035

7. Luoma JB, Chwyl C, Bathje GJ, Davis AK, Lancelotta, R. A meta-analysis of placebo-controlled trials of psychedelic-assisted psychotherapy.J Psychoactive Drugs. Published online June 12, 2020. doi.org/10.1080/02791072.2020.1769878

8. Mithoefer MC, Wagner MT, Mithoefer AT, Jerome L, Doblin R. The safety and efficacy of 3,4-methylenedioxymethamphetamine-assisted psychotherapy in subjects with chronic, treatment-resistant posttraumatic stress disorder: the first randomized controlled pilot study. J Psychopharm. Published online July 19, 2010. doi.org/10.1177/0269881110378371

9. Marseille E, Kahn JG, Yazar-Klosinski B, Doblin R. The cost-effectiveness of MDMA-assisted psychotherapy for the treatment of chronic, treatment-resistant PTSD. PLoS One. Published online October 14, 2020. doi:10.1371/journal.pone.0239997

10. MDMA-assisted psychotherapy study protocols. MAPS. Published online September 26, 2020. Accessed April 5, 2021. https://maps.org/research/mdma

11. Bonn-Miller MO, Sisley S, Riggs P, et al. The short-term impact of 3 smoked cannabis preparations versus placebo on PTSD symptoms: A randomized cross-over clinical trial. PLoS One. Published online March 17, 2021. doi.org:10.1371/journal.pone.0246990

12. Lawsuit filed against the DEA and attorney general to compel issuance of licenses to manufacture marijuana for clinical trials and potential FDA approval. MAPS. Published online December 3, 2020. Accessed April 5, 2021. https://maps.org/news/media/8610-press-release-lawsuit-filed-against-the-dea-and-attorney-general-to-compel-issuance-of-licenses-to-manufacture-marijuana-for-clinical-trials-and-potential-fda-approval

13. Michael Mithoefer, MD biography. MAPS. Published online January 2, 2010. Accessed April 5, 2021. https://maps.org/news/media/1472-michael-mithoefer-m-d-principal-investigator

14. Grob CS, Grigsby J. Handbook of Medical Hallucinogens. Guilford Press; 2021.

15. Pollan M. How to Change Your Mind: What the New Science of Psychedelics Teaches Us About Consciousness, Dying, Addiction, Depression, and Transcendence. Penguin Press; 2018.

16. Nuwer, R. A Psychedelic Drug Passes a Big Test for PTSD Treatment. New York Times. Published online May 3, 2021. Accessed May 6, 2021, https://www.nytimes.com/2021/05/03/health/mdma-approval.html

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Expert Q&A: MAPS and Psychedelic-Assisted Psychotherapy - Psychiatry Advisor

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